House Prices Will Continue Rising Despite Brexit, Say Homeowners

It’s now been a couple of months since the UK voted to leave the EU, and as of yet, there has been no meaningful impact on the property market, other than a slight 1% drop in house prices.

With no concrete impact likely to surface for quite some time, online estate agent eMoov.co.uk asked over 1,000 UK homeowners what they think will happen to house prices as a result of the Brexit vote.

House prices 

Following the Brexit vote, eMoov asked homeowners what they expect the change in house prices to be over the next 12 months. The majority of those asked (70%) believe there will be a change in house prices as a result of the Brexit vote, with 54% of those saying that house prices will continue rising.

eMoov then asked what the change in house prices will be over the next five years. Most of those asked (78%) believe the leave vote will impact property values, with 64% saying prices will continue to grow over the next five years.

Housing demand

The agent then asked if the Brexit vote will result in less demand for housing, due to lower immigration levels. Around 61% of those asked don’t think that lower immigration levels will help suppress the overwhelming demand for UK property.

However, when focusing on London, this figure shifts to a majority of 53% who believe that lower immigration will cause a reduction in housing demand.

Property sales

The homeowners were then asked if the Brexit vote has changed the minds of those selling their properties. Despite an abundance of doomsdays predictions, 78% of those asked said that the Brexit had no impact on their decision to sell.

Almost a quarter (23%) of homeowners said that when voting in the referendum, selling a property swayed their decision. Over half (59%) of those that voted to remain did so because they were already involved in a property sale.

House Prices Will Continue Rising Despite Brexit, Say Homeowners

Interest rates

What do homeowners think will happen to interest rates now that we’ve voted to leave the EU? 78% of those asked believe there will be an impact one way or another, with 63% saying rates will drop even further, despite the UK already seeing an interest rate cut to 0.25%, just weeks before eMoov’s poll.

Housebuilding

As the Government’s pledge to build more homes has so far been worryingly inadequate, it is unsurprising that 53% of homeowners believe that leaving the EU will have a negative impact on housebuilding in the UK, due to the lower number of European tradespeople.

Troublingly, a recent report also claims that the country is still facing significant obstacles to get more homes built. Read more here: /1-4-billion-bricks-needed-solve-housing-crisis/

Holiday homes

eMoov then asked if the Brexit vote will impact the buying process for those looking to purchase a holiday home in the remaining EU member states. A huge 62% of homeowners believe it will now be harder for UK nationals to buy a holiday home in mainland Europe.

Unemployment 

Will the leave vote result in higher unemployment? The majority of homeowners asked (56%) believe that the Brexit vote will not result in higher unemployment levels across the UK.

Recession

On whether the Brexit vote will lead to another recession, 65% of homeowners claim the outcome could trigger another economic downturn across the country.

Second thoughts 

Finally, eMoov asked the homeowners whether they would vote differently in the referendum now.

Of those that voted for Brexit, just 21% would change their mind if they were given a second chance, while 15% of remain voters have also had a change of heart.

The founder and CEO of eMoov, Russell Quirk, comments on the findings: “There is still little evidence to show any detrimental impact on the UK property market, despite a number of media publications looking to scare the British public into thinking otherwise.

“The UK market is still looking impenetrably strong, with just a minor seasonal drop in values being the only chink in its armour. This research shows that the troops on the ground, British home sellers and buyers, are seeing the same when it comes to selling and buying, and so far, there is little if anything to worry about.”

He adds: “Yes, any lasting damage will take time to show conclusively, but had there been any as a result of the Brexit vote, the shockwaves would have already impacted on the ground level, and it appears that this just isn’t the case.”